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Research Alert: CFRA Downgrades Opinion On Shares Of Transdigm Group To Hold From Buy
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Research Alert: CFRA Downgrades Opinion On Shares Of Transdigm Group To Hold From Buy
Nov 11, 2025 11:21 AM

02:15 PM EST, 11/11/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We decrease our 12-month target price by $212 to $1,300, 32.5x our FY 26 (Sep.) EPS estimate, a discount to TDG's three-year average forward P/E of 33.4x and below peer average of 35.3x. We trim our FY 25 EPS estimate by $0.63 to $36.49 and FY 26's by $4.49 to $39.99. Washington Analysis, a CFRA company, notes that Pentagon acquisition reforms announced by Defense Secretary Hegseth pose significant structural risks to TDG's sole-source business model. The reforms mandate dual-sourcing for critical components and third-party manufacturing licensing, directly threatening TDG's aftermarket monopolies that generate exceptional margins. With aggressive implementation timelines and bipartisan Congressional support, these changes appear permanent rather than cyclical. Additionally, Lowry Research, CFRA's technical research arm, has indicated deteriorating chart patterns. While TDG's near-term fundamentals remain solid, the regulatory headwinds create meaningful downside risk to our previously bullish thesis.

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